Estate Planning & Preservation
Clients often ask, "Do I need a will?" The answer depends
upon a number of factors, some of which are listed below:
Minor Children
If you have minor children, you need a will to identify whom you want to care for your children in the event you and your spouse die. If you do not designate a guardian, the court will do so for you; a court appointed guardian may not be the same person you would chose.
Avoidance of Estate Taxes
In 2001, Congress passed a tax bill
that is steadily increasing the amount of money or property an individual
can give or bequeath without paying gift or estate taxes. In 2009,
that amount is $3,500,000. The Federal estate tax is scheduled to disappear
completely for one year in 2010, and in 2011, the Federal estate tax exemption
is scheduled to go back to 1,000,000. It is universally expected that Congress
will pass new legislation, but impossible to predict with certainty what the new
legislation might entail. Many commentators believe that Congress will act to keep
the Federal estate tax exemption at 3,500,000, as it is scheduled to be in 2009.
Minnesota’s estate
tax is assessed on estates of approximately $1,000,000 or more. If
your family's combined assets, including life insurance or death benefits,
exceed the amount that can be protected from estate and gift taxes,
those taxes can be quite significant. Prudent estate planning can
help shelter your assets from taxation and make optimal use of the "unified
credit" toward estate and gift taxes.
Powers of Attorney
In the event you suffer a catastrophic
accident or illness and cannot make necessary decisions, a Power of
Attorney can enable a spouse or other nominated person to act on your
behalf. Health Care Directives or Living Wills allow a loved one or
trusted friend to convey your wishes regarding life sustaining measures.
Living Trusts
A Living Trust can be a good alternative
to a will, but it is not always the best way to avoid probate and
the payment of estate taxes. Your individual situation must be analyzed
to determine whether a Living Trust is a good option for you.
Specific Giving Considerations
A will is frequently necessary to
provide for specific gifts of personal property, specific bequests
to individuals and charities, to delay the distribution of assets
to children until they are mature enough to invest them wisely or
to provide for special needs children.
Attorneys:
Ward R. Anderson, Virginia A. Dwyer, Vance B. Grannis,
Jr., David G. Keller, Barry L. Wittenkeller, and Paul A. Lindstrom
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